GM to pay $$ settle civil lawsuits,criminal charges

DETROIT (AP) – General Motors is taking a couple of big steps to try to get past the scandal involving faulty ignition switches in small cars.
 
     The company is going to pay $575 million to settle hundreds of civil lawsuits filed against it.
 
     And federal prosecutors in New York say GM has agreed to a settlement of a criminal investigation of the company. GM is expected to pay a $900 million fine to avoid prosecution on wire fraud charges.
 
     A prosecutor did not rule out charging GM employees criminally.
 
     General Motors was charged criminally with failing to disclose and then misleading consumers about the defective ignition switches. It also was charged with wire fraud for making false safety claims to consumers over the Internet.

Previously

NEW YORK (AP) – Manhattan’s federal prosecutor says choosing a path on the criminal investigation of General Motors was difficult because there are no specific laws against failing to disclose a car equipment defect.
 
     U.S. Attorney Preet Bharara also told a news conference Thursday that the criminal probe into the company’s deadly problem with small-car ignition switches continues. He did not rule out charging GM employees criminally.
 
     The prosecutor commented as he announced General Motors was charged criminally with failing to disclose and then misleading consumers about the defective ignition switches. It also was charged with wire fraud for making false safety claims to consumers over the Internet.
 
     The company reached a deal to pay $900 million and accept an independent monitor for three years with the expectation that the charges will be dropped.